NASDAQ 100 sits on nearly $1T in cash — and we’ve got the charts to prove it
US tech giants are hoarding more cash than ever
Microsoft and Alphabet are NASDAQ’s kings of cash
As one might expect, the biggest tech giants have the deepest pockets. But five companies in particular are saving more than any other: Microsoft, Alphabet, Apple, Amazon, and Facebook.
Together, they’ve added $323 billion since 2012. Now, the reserves of those five tech companies represent more than half of the total cash controlled by the entire NDX, which includes around 100 firms.
On the other hand, some would rather deplete their war chests. Hard Fork found networking mainstay Cisco “saved” the least, now with $20 billion less compared to 2012; biotech play Amgen $14 billion has less; and eBay $3.8 billion.
Still, more than 80% of the companies currently in the NDX added cash to their kitties since 2012.
The real question is: what does Big Tech plan on doing with all its billions? Some companies use extra cash toreward shareholders with dividends, and others opt to buy back their own shares to inspire demand, orsome kind of combination.
[Read: Big Tech told Congress there’s loads of competition. This chart says otherwise]
But considering the sheer size of the fortunes amassed by tech’s biggest companies, it’s equally likely we could see even more acquisitions in the near future—no doubt only when all that pesky antitrust nonsense with Congress is over with. Surely.
Story byDavid Canellis
David is a tech journalist who loves old-school adventure games, techno and the Beastie Boys. He’s currently on the finance beat.David is a tech journalist who loves old-school adventure games, techno and the Beastie Boys. He’s currently on the finance beat.
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